Which insurer can ignore that goal? To achieve it insurers must deploy next generation data engines but the good news is that these can be staged with fast results and longer term strategic benefit.

Technology stack to capture data

Generate insights through analytical models

Integrate these insights in real-time with core processes

BCG say 30% insurers started projects but only 15% managed to scale them. Most likely they ignored constraints and were not focused enough.

Main constraints?

Structured data stores and data warehouses that are inflexible, costly, slow to adapt and not scalable

Data silos- 75% of insurers lack a common data storage system and taxonomy which means they cannot access and analyse disparate data.

This means you are missing that 6% to 9% upside in combined ratios.

Take one aspect of insurance- claims management. Insurers that cannot access and analyse the documents, emails, photos, videos, dashcam footage that arrive in different formats and times. Wasted data that is vital for, amongst other goals, reducing fraud.

Some Motor and Home & Contents Insurers have already solved this issue with 360Retrieve. For example

Interrogation and analysis of claims documentation including;

CNF’s

Stage 2 and Stage 3 Settlement Packs

Medical Reports

Hire and repair accounts

Historical 18-month back-load of documents.

Projects have delivered these success criteria: -

The ability to ingest documents and “turn” all text in documents readable and searchable.

More than that, projects have unleashed the value of data from ecosystem partners such as vehicle repair networks, drainage and subsidence contractors, specialist repairers and restorers like carpets, jewellery .

These benefits are deliverable in the next 12 month period and set up insurers for the longer term success described in the linked BCG article. The key stages to success are:-

Capture diverse and disparate types of data

Integrate data with decision making

Focus on ONE concrete initiative that delivers big results

Strengthen data capabilities

Stage the process

Choose capable and proven technology partners- in digital claims 360Globalnet is one such solution

Are you going to ignore that 6% to 9% combined ratio uplift or take action now?

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In today’s insurance industry, every link in the value chain—whether it be product development, marketing, underwriting, pricing, client servicing, or claims management—is becoming a data-driven play. That isn’t surprising. According to BCG studies, data-driven decision making creates an upside of from 6% to 9% of an insurer’s combined ratio (a key profitability measure calculated by dividing the sum of an insurer’s net claims, commissions, and expenses by its net earned premium income).

"Although more than 25% of insurers are planning to replace policy, billing, and claims systems...Overall budgets are starting to shift away from core applications and toward digital engagement, analytics, and ever-growing security needs."#insurtechhttps://t.co/bYrmCOi8E0